Buy rental next to your home?

Question

would you buy a rental across the street from your home or in the same neighborhood?

My initial thought is no, because of the possible drama that it could lead to if things went south with the tenants.  But I also know that people sometimes buy multi family units to live in while renting out the rest and it can be a great investment.

So buy a rental on my street if the numbers work or there are too many deals to be had to pursue something that could turn into a nightmare?

Chris Adams · Answer

I lived in subdivisions where I had built numerous homes for people and I would have no issue living next to one of my rentals. If you have problems with this you don't have the wrong location you have the wrong tenant.

Aaron Mazzrillo · Answer

on the fence on this one. I'd love to own more properties in my neighborhood, but not too excited about the idea of tenants knocking on my door for any reason, even if it is to hand me rent.

Aaron Mazzrillo · Answer

I agree. I wouldn't say 'no' just because the house is across the street or next door. Just the idea of it doesn't excite me.

Jason Merchey · Answer

Elizabeth  Colegrove , how do you manage to buy properties so rapidly?  I assume your credit is great. Your D to I ratio is fine?  You can validate rents to offset the new mortgages?  What bank issues that many loans to you?

Jon K. · Answer

Not right next door on visibly within distance from each other.

The next street over, sure.

I would not want the tenants one street over to know where my house is or that I live nearby.

I simply don't want to be bothered by tenants. And certainly not next door.

In a duplex situation, well, you're stuck. Otherwise, for houses I would rather the tenant to not know where I live and not see me in a bathrobe out getting the newspaper or have the chance to bother me whenever I step outside.

John Chapman · Answer

I gotta say, I subscribe to the "out of sight, out of mind" mindset with tenants. Many times when I speak with a tenant, they will raise an unrelated, request for a repair that is so minor that it would not justify a repair call in itself.  That is, the tenant would not call you just to fix this one item (or it's not even a real repair request) and would probably wait until there were a few items to fix or for a maintenance inspection.  I think good and bad tenants almost feel obligated to raise any little thing that is wrong with the property every time they speak with you. (Maybe I'm having a skewed perspective).  If it's important, they know and do call me, but particularly with SFRs, you can't send a repair man out for every minor thing.  I think that if you lived in the same neighborhood as your tenant, there is a good chance that every time they see you they would have some minor, nitty repair request.  To be clear, I'm not suggesting that legitimate repair requests should not be handled expeditiously and professionally, I'm only talking about genuinely trivial ones that either the tenant should fix him or herself or should be combined with other items.

Elizabeth Colegrove · Answer

• We use the local mortgage broker issues. We found that we are at a point where we ALWAYS use our team. It might technically be cheaper to use someone else but the fact that they know our situation can't be beat.
	
		We have a mortgage broker, real estate agent and escrow office that knows what our "goals" are and makes it happens. I bring coffee, give flowers and the agent is a good friend. So we are able to try a bunch of things with help.
• We have a mortgage broker, real estate agent and escrow office that knows what our "goals" are and makes it happens. I bring coffee, give flowers and the agent is a good friend. So we are able to try a bunch of things with help.
• We are now above 4 mortgages so we are under even stricter guidelines. We have to put 25% down AND many programs are unavailable. Honestly its perseverance and time.
• Rules change all time. So you have to CONSTANTLY be flexible because your mortgage broker is going to tell you something came up and you need to adapt.

• We have a mortgage broker, real estate agent and escrow office that knows what our "goals" are and makes it happens. I bring coffee, give flowers and the agent is a good friend. So we are able to try a bunch of things with help.

Honestly being so young with limited income, reserves, etc.  buying real estate has been a challenge. Every houses has been a just barely and a pain in the tush. The nice thing about real estate on a 30 year loan. Is once it's done, its locked in. So than I move on. Yes in the beginning I had to micromanage the process. Now I just manage and work with my team.

It's certainly not EASY, but it is my passion and hobby. I LOVE what I do. I work with great people and our end goals come closer with every house we close.

Edward Burns · Answer

If you use a Property Manager you should have no problem.  In addition, if you have other properties (or plan on buying others) and use the same managing service, it can show you if the service is providing what you are paying for(or at least believe the service you are paying for.)

Jon Klaus · Answer

Sure, I'd just screen very carefully.  The question is akin to "would you work directly with the employee you hire? "

Therese V. · Answer

If you use a property manager the tenant probably wouldn't even know you were the property owner. (unless they looked the information up on the tax assessor site)

Buy rental next to your home?

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